Pros and cons of selling Amazon Return PalletsĪmazon Return Pallets or Amazon liquidation pallets are large wooden crates that Amazon uses to sell returned products in bulk.Factors to keep in mind while purchasing Amazon Return Pallets.In this article, we’ll discuss what Amazon Return Pallets are and how you can buy and sell them for a profit. You can make a lot of money as a seller by buying and reselling all these returned products.Īnd this is where Amazon Return Pallets come in. Therefore, all these products sit in Amazon’s warehouse, taking up space without generating any value. Usually, Amazon sends the returned products back to the seller for a fee, but from a seller’s perspective, it doesn’t make economic sense to pay Amazon to get the product back to their warehouse. But that also means a significant return rate for any products sold on Amazon.Īmazon says the average return rate is around 10% for most merchandise on the platform, but more often than not, it depends on what is being sold.įor example, the return rate for books and media is 5-7%, home, and kitchen goods are 8-10%, consumer electronic item is 25-30%, and the return rate for clothing items can go as high as 40%. It means consumers can return any product in 30 days. His profit is around 35%.If you are an Amazon seller, you already know Amazon’s strict 30 days “no question asked” return policy. This Sam’s Club haul has a retail value of up to $85,000. “People love that stuff, because Bounty paper towels, that’s a $20 package right there, $25,” he said. We spy a Ninja coffee maker, Hunter rain boots and Bounty paper towels. Each is wrapped in plastic, so you can only see the products on the outside. This is a big part of the liquidation game: finding the treasures buried in the trash.Īcross the room sit rows of pallets from Sam’s Club. Their branches poke in all directions, like they’ve been used or were on display at a store. And the trees are a little junky looking. “Like, this is going to be a hard item to sell.” You know, someone who was a builder, they’ll have material there to build their houses or do a project at home or even resell the items for more money,” he said.Īnd what’s a dud? “These Christmas trees,” he said. These things retail for thousands of dollars apiece. “Sometimes, we’ll get home runs and sometimes we’ll just get a bunch of stuff that ends up in the trash,” he said, pointing to a section of items from Home Depot. And he purchases them sight unseen, so every delivery is literally a giant mystery box. Llenga purchases up to 60 truckloads a month, with each holding around 25 pallets. “It’s a lot of overhead, it’s a lot of moving parts that you got to figure out before, you know, taking that leap of faith where you’re, you know, making a commitment with these retailers.”Ĭompanies like Target and Macy’s only sell returned merchandise by the truckload. “You know, it’s a big risk to take on a space like this,” Llenga said. It feels like organized chaos, with neat rows of random goods - everything from lawnmowers to hand lotion. Today, American Liquidations has eight employees and 40,000 square feet of warehouse space. Llenga left his job as a private equity analyst a couple of years ago to do this full-time. And the industry is growing beyond household names like T.J. Because it’s so time and labor-intensive to sift through returns, many retailers sell them to third-party sellers: liquidators.Įveryone from publicly traded companies to individuals working out of their garages play the liquidation game. In 2022, Americans returned $800 billion worth of merchandise, according to the National Retail Federation. It started as a side business and then just kind of blew up out of nowhere,” he said. But after selling the SUV, Llenga made a profit of $1,300, which he reinvested. “My first pallet - I purchased it for $1,800, delivered to my house, threw it on Facebook Marketplace and a guy gave me $1,100 and a Ford Escape for it,” he said. That’s actually how Llenga got his start. Their customers are places like scratch-and-dent stores or individuals who are willing to buy a full pallet of random goods, break them down and resell them on sites like eBay and Poshmark. “This has a mix of apparel and shoes.”Īmerican Liquidations buys truckloads of overstock, returns merchandise and resells it - not to everyday shoppers looking for a deal, but to other businesses. “So the one that just rolled in came from Amazon,” said co-owner Dasti Llenga. It’s 9 a.m., and the box trucks are already arriving at American Liquidations in Connecticut. Today, we’re focusing on where a lot of those returns end up: liquidators, the third-party sellers focused on buying and reselling returned or damaged goods. Recently, Marketplace got a close look at the operations of a Costco returns warehouse.
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